The consumer bureau exempted HARP refinancings and other government programs to modify loans and prevent foreclosures from the scope of the QM rule.

While the CFPB wanted to prevent a contraction of credit, it also wants to provide the “greatest consumer protections ever devised,” CFPB director Richard Cordray said.

To that end, the consumer bureau took a hard line on affiliated transactions and mortgage brokerage firms under the 3% points and fee cap mandated by Dodd-Frank.

The final rule counts all compensation a mortgage brokerage firm receives from the wholesaler toward the 3% cap. Currently, wholesalers are paying 225 to 250 basis points to brokers, which does not leave a lot of room to cover other fees. It also places the brokerage firm at a pricing disadvantage to retail lenders. Under the rule, a bank only has to count the fee its pays a loan officer toward the 3% cap. A bank LO may only receive 75 bps for each loan.

This could be a big setback for the mortgage broker community. But the CFPB is seeking comment on “technical issues” on how to calculate loan origination compensation under the points and fees cap.